Bank Activities Reform Commission Asking 200 Public Companies To Help Reform United States Securities and Exchange Commission

New York City, New York (PRWEB) January 4, 2004

Free and Clear Press Corps – The American Bank Activities Reform Commission (ABARC) has launched a contact campaign to unite domestic efforts of small cap companies and their stockholders ahead of a planned $ 5 trillion class action lawsuit against the United States Securities and Exchange Commission which will charge the Commission with negligence in enforcing the Truth in Securities Laws of the United States.

The London Stock Exchange has out enforced the United States Securities and Exchange Commission and the NASD with its severe stance on naked short selling involving Room Service (LSE: RSV).

To that end ABARC is asking stockholders and the managements of companies victimized by naked shorting to join in the planned suit as Lead Plaintiffs through an action which plans to name not only the SEC as an agency of the United States government as the key defendant in the case, but also past and present attorney?s who have worked for or represented the SEC. All told, more than 4,000 SEC registered attorneys may be called upon to tell the truth, the whole truth and nothing but the truth in the case.

Unlike the SEC and NASD, which has electronically penned almost insignificant ?small fines,? but which in general has left most of those involved in the practice alone, the LSE has simply ordered market makers involved in the scandal to give investors who did not receive shares their money back. ABARC claims that more than $ 100 billion has been lost in equity due to the SEC?s negligence in enforcing the Truth in Securities Laws, particularly as it relates to naked shorting.

In the U.S., investors and companies have separately gone to court to seek shares or compensation to seek retribution for the damaging practices of offshore companies, mostly engaged in illegal money laundering for organized crime figures in New York. Some of the members of organized crime families have managed to infiltrate the SEC, the CIA, the FBI and other government agencies and have had a revolving open door to the SEC since the first bootlegging Chairman, none other than Joseph Kennedy, took office in the 1930?s.

British investors who have also invested in US stocks are not satisfied with recent actions taken by the London Stock Exchange in the Room Service action. Nigel Smith of the Room Service Shareholders’ Action Group said the offer is “totally unacceptable,? and criticized the exchange for not consulting shareholders before extending the offer.

ABARC is seeking to unite stockholders and companies under one consolidated legal action to not only seek restitution but to negate the possibility of future naked shorting actions by organized crime on both sides of the Atlantic. Some volunteers have also set up a web site called http://www.investigatethesec.com with over 1,000 persons and over a dozen victimized companies having signed petitions for the US Congress to intervene.

The recent discoveries at Parmalat in Italy has resulted in calls by IBARC leaders for the resignations of top Italian government officials including the head of the Central Bank of Italy and its Prime Minister. Certain attorneys who worked for the SEC during the past 15 years knew or should have known about Parmalat and its phony accounting. The US SEC only recently filed a civil complaint against former Officers and Directors, once again too little too late.

Many market makers, including Evolution Beeson Gregory, sold more shares in Room Service than existed, leaving many investors without either their funds or their certificates. The LSE told the market makers to pay investors who bought ?shares? between September 25 and October 22, when trading was suspended, the price they paid for the shares plus any costs of the transactions. The British Financial Services Authority is continuing to investigate the scandal. Trading remains suspended due to what the LSE said was the size of the short positions, but the exchange said trading should begin again after the conclusion of the settlement offer.

In an effort to cover up its negligence in the United States, the U.S. Securities and Exchange Commission has put out Regulation SHO for comment that will end January 5, 2004. Jonathan G. Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609 is also to be named in the planned class action by BARC members who join as lead plaintiffs. ?The SEC should have dealt with this issue in late 80?s,? says one volunteer. ?They are running 13 years behind and should have known and in fact did know about the issues soon to be addressed in the Federal Court of Claims.?

Comments may be submitted electronically at the following E-mail address: rule-comments@sec.gov. All comment letters should refer to File No. S7-23-03. Comments submitted by e-mail should include the file number in the subject line. Comment letters received will be available for public inspection and copying in the Commission’s Public Reference Room, 450 Fifth Street, NW, Washington, DC 20549. Electronically submitted comment letters will be posted on the Commission’s Internet web site (http://www.sec.gov).

Dave Patch, an investor who has been working for almost a decade to bring an end to the abusive naked short selling practices while bringing the attention of the mainstream media to the issue has called the recent proposed regulations ?another failure to address how and why it is manipulative, abusive, and problematic and as such fails to drive to the root of the issue?. His comments can be reviewed at this link: http://www.sec.gov/rules/proposed/s72303/depatch110603.txt

IBARC has been critical of the SEC’s civil penalty judgment against WorldCom, which provided that WorldCom was liable for a civil penalty in the amount of $ 2,250,000,000. It further provided that, in the event of confirmation of a plan of reorganization of WorldCom by the Bankruptcy Court ? which occurred on October 31, 2003 ? WorldCom’s obligation to the SEC shall be satisfied by the company’s payment of $ 500,000,000 in cash and its transfer of common stock in the reorganized company having a value of $ 250,000,000, on the effective date of its plan of reorganization. Under the terms of the settlement, the funds paid and the common stock transferred by WorldCom to satisfy the SEC’s judgment will be distributed to investor victims of the company’s fraud, pursuant to Section 308 (Fair Funds for Investors) of the Sarbanes-Oxley Act of 2002.

IBARC claims that the entire $ 2.25 billion civil penalty should be returned to investors, not just $ 500 million in cash and $ 250 million in common stock. IBARC also points out that the appointing of former SEC Chairman Richard C. Breeden, who is currently serving as WorldCom’s court-appointed Corporate Monitor, to be the Distribution Agent to supervise the distribution of the SEC’s civil penalty judgment against WorldCom, smacks of conflicts of interest since the SEC should have known about WorldCom?s fraud when Breeden was the Chairman of the SEC.

Observers of the growing revelations of SEC negligence, particularly in the case of naked short sales have said that trades ?do not settle? because broker-dealers do not effect buy-ins, as required by law, and that there is an unspoken understanding that any brokerage that tries to force a buy-in will be retaliated against. The SEC has failed to inform the public under the Truth in Securities laws who those brokers are despite the fact that it has records of every naked short sale in the market. ?The SEC is covering up what could lead to a total collapse of the banking industry if every investment banker is forced to cover every naked short position in the market?, says one private investigator that dared not call it international conspiracy to defraud.

ABARC has begun its campaign to contact the following companies and their stockholders to join in the suit against the SEC and the other named defendants in the class action as lead plaintiffs:

Ongoing investigations by IBARC in New York, Liechtenstein, the British Virgin Islands, Grand Cayman Islands, Isle of Man, United Kingdom, Italy, Panama, and Switzerland into such funds as Laurus Master Fund Ltd., The Keshet Fund L.P., Keshet L.P., Nesher Ltd., Talbiya B. Investments Ltd., Esquire Trade & Finance Inc., Amro International and dozens of others are turning up initial evidence related to about two hundred companies in the United States whose stockholders have lost over $ 100 billion in value over the past decade through toxic financing schemes arranged by various organized crime syndicates managed out of New York City.

The first Bank Activities Reform Commission was started in 1993 in Portland, Oregon by a group of disgruntled homeless people who had lost their economic means due to inflation, abusive banking practices, and corruption in the global financial system.

After ten years of research and development, the group has grown international in scope and has gathered sufficient evidence on many different fronts that it believes will support the radical reform of the entire banking establishment in the United States making it far more transparent than as currently exists.

The long-range goal of the International Bank Activities Reform Commission is to put ethics in on the global financial system. The effects of its work are beginning to be felt around the world as more volunteers blow the whistle on corruption at the highest levels of various governments on the planet.

Persons and companies with knowledge of illegal naked short selling, government corruption, or who wish to join in the class action may post their case and contact information at the following web site: